How to make your retirement savings last

Are you worried about running out of money in your retirement years? Here are some tips to help you manage your savings and enjoy a financially stable future.

1. Set priorities
Setting specific objectives is the foundation of a solid financial plan. What lifestyle do you want? Do you hope to travel or start a new hobby? It can be tempting to overspend as you explore this new chapter of life, so decide what’s most important and create a list of priorities.

2. Think long term
Your expenses will change over the next few decades, and it’s important to prepare for the unexpected. In addition to emergency savings, your retirement budget should take into account your potential life expectancy and the eventual need to rely on at-home care or move into an assisted living facility.

3. Determine expenses
Gather your bank account and credit card statements from the previous 12 months and last year’s tax return. Calculate how much it costs you to live for a year and divide your spending into fixed and flexible expenses. Don’t forget to include the estimated costs of your retirement plans.

4. Make trade-offs
Compare your expenses with your retirement revenue. Are your fixed expenses taking up too much of your income? To afford a yearly cruise, for example, do you need to reduce your housing expenses by downsizing? Refer to your list of priorities to help you decide which compromises are worthwhile.

A detailed, realistic budget will help you make the most of your savings and give you the peace of mind you need to enjoy your retirement.